Starmalls profit up 34% at end-Sept.

Starmalls, Inc., the listed commercial arm of Vista Land & Lifescapes, Inc., reported a net income growth of 34 percent to R1.5 billion for the first-nine months of the year as it sustained double digit growth in results of operations.

Revenues were at R4.1 billion or a 29 percent increase from same period last year. Earnings before interest, taxes, depreciation and amortization during the period grew 40 percent from the same period last year to R2.95 billion.

“We remain bullish on the retail industry’s outlook for the rest of the year, as we see continued growth in the disposable income of Filipinos due to sound Philippine macroeconomic fundamentals, sustained overseas Filipino remittance growth and the BPO sector contribution,” Starmalls Chairman Manuel B. Villar Jr. said.

He added that, “we are now taking advantage of the synergies that have developed as a result of our integration into Vista Land. One of which is the creation of niche markets as we are putting up malls within or near our existing residential developments, thus taking advantage of the natural catchment area within those lived-in communities.”

Capital expenditures for the 2017 are set at R9 billion. The company’s total consolidated assets amounted to R43.7 billion.

At end-September, Starmalls including Vista Land had over 1 million square meters (sqm) of gross floor area (GFA) in its commercial assets portfolio and is still continuing to expand its leasable space targeting to reach 1.3 million sqm of GFA by end 2018.

According to Starmalls President Benjamarie Therese Serrano, they are ramping up Starmalls’ expansion program and will deliver additional leasable space in the coming years as they develop their existing commercial land bank and will also be looking at Vista Land’s over 600 hectares of land across the country that are suitable for commercial development.

“The Company’s growth rate was robust as our expansion programs are already contributing to our financial performance in addition to the increased rental revenues from our existing malls brought about by favorable rental reversions and increased occupancy. We are poised to have another banner year this 2017 given our 9M2017 financial performance,” Serrano added. (JAL)